The CNN Money Fear and Greed Index remained in the “fear” zone, but fear levels eased slightly after US stocks rose on Thursday.
Wall Street posted gains in the previous session, driven by financial and health stocks.
Markets have fluctuated between gains and losses in choppy trading on Thursday as concerns persist over the Fed’s imminent moves to combat rising inflation.
Barclays, bank of America and Jefferies said they now expect the Fed to raise interest rates by 75 basis points at this month’s meeting.
The Dow rose 0.61% to close at 31,774.52 on Thursday. The S&P 500 rose 0.66% to 4,006.18, while the Nasdaq composite rose 0.60% to settle at 11,862.13 in the previous session, amid a slight rise in shares, including Microsoft Corporation MSFT and Amazon.com, Inc. AMZN.
At a current position of 42.0, the index remained in the “fear” zone, after a previous position of 40.0.
What is the CNN Business Fear & Greed Index?
The Fear & Greed Index is a measure of current market sentiment. It is based on the assumption that higher fear puts pressure on stock prices, while greater greed has the opposite effect. The index is calculated on the basis of seven equally weighted indicators. The index ranges from 0 to 100, with 0 representing maximum fear and 100 representing maximum greed.